Panel backs Posh project

Bethlehem Parking Authority rejects competing deal for lot.

June 23, 2005|By Nicole Radzievich Of The Morning Call

After receiving a competing last-minute offer for a smaller-scale project, the Bethlehem Parking Authority on Wednesday decided to go with its original deal and sell a Center City lot to a developer who wants to build a $50 million high-rise.

The authority unanimously voted to sign an agreement of sale with Joseph Posh Jr. of Posh Properties for the lot behind the North Street parking garage. Posh wants to build 17 floors of condominiums, hotel rooms and a restaurant. He reportedly will pay the authority $600,000 for the property.

If all goes smoothly with the agreement, Posh, of Bethlehem Township, plans to finalize the deal in a year and start the project at Guetter and North streets by mid-2006.

"We were looking at the best investment for the garage, not just the cost of the land," authority Executive Director Hector Nemes said.

Nemes said Posh's project -- billed as the downtown's largest economic development project in the city's history -- will help fill the half-full 800-space garage on North Street. He expects about 100 residents and 100 hotel guests will use the spots, bringing the authority more cash.

But developers Robert Smith and Domenic Villani offered $700,000 for the land after reading about the pending deal in Wednesday's newspaper. While the authority had a closed meeting to discuss the new offer Wednesday, Smith and Villani said they would like to develop the property on a smaller scale -- possibly a two- to five-story condominium complex.

Villani said it did not seem fair the authority would sell public property without giving everyone a fair chance to present a proposal.

Richard Boyer, the authority's legal adviser on the deal, said the law does not require the authority to bid out the sale or draw up requests for proposals. The authority, he said, has the power to negotiate with a single buyer.

Nemes said the authority had not thought of selling the property until Posh approached officials 21/2 months ago. Other developers have since made offers, but Nemes said Posh's project is the way to go.

The agreement of sale requires several provisions such as an enclosed pedestrian bridge be built between the high-rise and the garage, providing residents, employees and hotel guests with easy access to the garage. It also mandates that the building be at least 12 stories of mixed use and that construction commence within two years of the deal being signed.

If the provisions are not met, then the authority has the option of buying back the land, Boyer said.

Until construction starts, the authority can continue to use the lot. The three dozen drivers who park there now will be relocated to the North Street garage.

The project has generated much excitement from city officials. The brick-and-synthetic-stone structure would house 70 condominiums ranging from $250,000 to up to $1 million for top-floor penthouses. In addition, there would be a 100-room hotel with a swimming pool and a 5,000-square-foot restaurant.

Mayor John Callahan has said the residences would go a long way toward strengthening an already thriving historic downtown.

Posh's project is one of several high-end condominium complexes being planned near Bethlehem's business districts. On the north side, developer Lou Pektor of Ashley Development Corp. is building a five-story office and residential complex at 1 E. Broad St., just around the corner from Posh's project, and is working on a $24.5 million renovation of the old Johnson Machine Shop on the city's South Side.

While Posh's plans have yet to be submitted, city officials say it appears the project faces no zoning issues. It also is outside the historic district, which means it does not fall under the city's Historic and Architectural Review Board.